If a business is operating under perfect competition, which of the following calculations would be used to determine the marginal revenue product?
A)MRP = MP x Q
B)MRP = MP/P
C)MRP = MP x P
D)MRP = MP P

Question

Quizplus · Accepted Answer

If a business is operating under perfect competition, the equation MRP = MP x P would be used to determine the marginal revenue product.
Key Takeaway: The marginal revenue product (MRP) is the revenue that the business can expect from using one more unit of a factor of production. If operating under perfect competition, the MRP can be derived from multiplying that factor's marginal product (MP) by the price of the product (P).

If a Business Is Operating Under Perfect Competition, Which of the Following